Lear Group, Seat Supplier, Files for Chapter 11 Protection

As expected, on July 2, Lear Corp., a supplier of automotive seating systems, electrical distribution systems and electronic products, has reached an agreement in principle regarding a consensual debt restructuring with steering committees representing its secured lenders and its bondholders. The company plans to commence the proposed restructuring under court supervision pursuant to a voluntary bankruptcy filing under Chapter 11 of the U.S. Bankruptcy Code by the company and certain U.S. and Canadian subsidiaries.

Lear's subsidiaries outside North America would not be part of the bankruptcy filing.

The company has received commitments from a syndicate of secured lenders, led by J.P. Morgan and Citigroup, for $500 million in new money debtor-in-possession financing.